Algorand Foundation Among Creditors Opposing Restructuring of Troubled Crypto Exchange Hodlnaut

The Algorand Foundation declared $35 million in exposure to the lender in September.

AccessTimeIconApr 25, 2023 at 2:53 p.m. UTC
Updated May 9, 2023 at 4:13 a.m. UTC
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Several of the largest creditors of troubled Singaporean crypto lender Holdnaut have indicated they want the company to be placed in liquidation as opposed to a restructuring, according to a court filing published by Hodlnaut's judicial managers.

The creditors that oppose a restructuring include Samtrade Custodian Limited, which is currently in liquidation, and the Algorand Foundation. These creditors have claims worth $228 million Singaporean dollars (US$170 million).

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  • The announcement published by Hodlanut's judicial manager states that there is "no white knight investor" for the lender, leading to an absence of fresh capital.

    Creditors initially indicated a preference for liquidation in January, with the Algorand Foundation stating in a court filing that liquidation would "maximize the company's remaining assets available for distribution."

    In September, the Algorand Foundation declared that it had $35 million in exposure to Hodlnaut.

    The Algorand token (ALGO) is currently trading at 18 cents, having dropped by 3.34% in the past 24 hours, according to CoinDesk data.

    Edited by Aoyon Ashraf.


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    Oliver Knight

    Oliver Knight is a CoinDesk reporter based between London and Lisbon. He does not own any crypto.

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